The Reserve Bank announced a 0.25 percentage point increase in interest rates this morning to 6.5 per cent putting further pressure on Australia’s mortgage belt and Prime Minister John Howard’s election campaign.
The latest increase, which will add about $50 a month to the average $250,000 home loan, is the ninth in succession since May 2002. It is almost unprecedented to have rate rises in an election year. Today’s increase lifts rates to their highest level in 10 years.
The cash rate is 6.5 per cent and the standard variable loan rate to 8.3 per cent. More….